In this article, we will list the top recipients of US foreign assistance and discuss how foreign aid impacts economies. If you want to skip our thoughts on US’s foreign aid policy, head straight to 10 Countries That Receive the Most Foreign Aid From the US.
The United States, the world’s largest economy, has a longstanding tradition of providing foreign aid for humanitarian causes and economic development. This aid holds more than just a moral dimension, as it harbors tangible economic and business implications. For instance, by assisting countries that receive the most foreign aid from the US in developing their infrastructure and economies, the country strategically creates avenues for its businesses.
Notably, some of America’s top trade partners were once beneficiaries of US foreign aid. South Korea, for example, used to get substantial aid from the US when it was mired in poverty after the Korean War. According to USAID, S. Korea has been a model user of foreign assistance as the nation joined the OECD’s Development Assistance Committee in 2010 after surging from post-war destruction. If it weren’t for the $13 billion aid South Korea got from the US between 1945-1995, becoming an industrial nation and maintaining an average GDP growth rate of 4.9% between 1988 and 2022 might have been more difficult.
Foreign aid also facilitates access to resources, as many recipient countries are abundant in minerals, oil, or other commodities that are crucial to the US economy, but they don’t have enough means to benefit from their natural treasures. Aiding a country’s economy can also indirectly reduce the volatility of its currency, makes trade more predictable and safeguards American companies from the whims of fluctuating foreign exchange rates.
Although the economic benefits of foreign aid are clear, its perception among the American public is inconsistent. The Borgen Project reports that, on average, Americans believe that nearly 25% of the US budget is allocated to foreign aid, and it should be reduced to 10%. But in reality, less than 1% of the federal budget is dedicated to non-military aid (which translates to $73 per American).
Notably, detractors voice concerns over potential misallocations due to corruption, the risk of fostering dependency in recipient nations, and the debate over whether such funds would yield better returns if invested domestically. But despite this, President Joe Biden’s Budget Request for the State Department and the United States Agency for International Development (USAID) is $63.1 billion, $3 billion higher than FY 2023. This $63.1 billion budget will be used for foreign assistance and diplomatic engagement through USAID.
Some of the Hungriest Countries In The World are among the nations that receive the most foreign aid from the US; read our article on it for further details.
Corporations Helping The Foreign Assistance Sector
Several large corporations work in sectors related to foreign aid and development, either directly or through their subsidiaries. They often collaborate with government agencies, NGOs, and international organizations. For instance, Lockheed Martin Corporation (NYSE:LMT), in partnership with governments and NGOs, contributes resources, technology, and expertise to help mitigate the impacts of natural disasters and crises. Although Lockheed Martin Corporation (NYSE:LMT) is a renowned defense contractor, the company also provides information technology services, including some geared towards development and governance initiatives in foreign countries. Lockheed Martin Corporation (NYSE:LMT) works with more than 50 countries worldwide to help them protect their national interests while strengthening their economies, industries, and communities from within.
Likewise, Tetra Tech, Inc. (NASDAQ:TTEK) works on projects related to resource management, energy, and international development, among others. Tetra Tech, Inc. (NASDAQ:TTEK) offers solutions for clean water and sanitation projects in developing nations as it often partners with agencies like USAID. Tetra Tech, Inc. (NASDAQ:TTEK) contributes expertise for sustainable resource management and climate resilience as part of foreign aid objectives in countries facing ecological challenges.
If we talk about companies that donate in the wake of natural disasters anywhere in the world, Amazon Com Inc (NASDAQ:AMZN) has helped Turkey and Syria after a strong earthquake jolted the region earlier this year. Amazon Com Inc (NASDAQ:AMZN) prepared donations of relief items, including food, baby food, blankets, medicines, and tents, in shipments departing its warehouse in Istanbul. Other causes that Amazon Com Inc (NASDAQ:AMZN) donates include hunger relief, reducing homelessness, and nature conservation.
Learn about 26 Companies That Donate to Nonprofits to see which big shots pledge to spend their resources responsibly.
Let’s now find which countries get the most aid from the USA.
30 Countries That Receive the Most Foreign Aid From the US
Our Methodology
We found the top recipients of US foreign assistance from the Foreign Assistance Gov database that regularly updates the country’s spending on other nations. To provide a broader perspective of the US foreign aid disbursement ranking, we checked the said nations’ aid in the past 5 years (from 2018-2022) and ranked them accordingly. As the geopolitical horizon keeps changing, the countries getting the most aid from the US don’t stay the same for long.
But as per the last 5 years’ records, here are 30 countries that receive the most foreign aid from the US:
30. Mali
Aid From The US In The Past 5 Years: $1.15 billion
Mali faces threats from extremist groups in its northern and central regions that hinders economic growth. Therefore, the US gives foreign aid to Mali that primarily supports counterterrorism initiatives and strengthens governance. Mali’s current per capita GDP is $833, and 14.5% of people in the country live below the poverty line.
29. Mexico
Aid From The US In The Past 5 Years: $1.29 billion
Mexico, along with having the highest number of immigrants in the US, is also among the biggest US aid beneficiary countries. US aid to Mexico often focuses on strengthening the rule of law and reducing drug trafficking, as these issues result in violence and unrest. The aid also aims to enhance bilateral trade and investment ties on both sides of the border.
28. Haiti
Aid From The US In The Past 5 Years: $1.39 billion
Haiti is plagued by natural disasters and political instability. Economic challenges that stem from these issues keep Haiti the poorest nation in the Western Hemisphere. That’s why the US provides aid to lift Haiti’s democratic institutions, improve health and education, and build resilience against natural disasters. Emergency food assistance and crisis assistance are the two main aid categories that Haiti gets.
27. Niger
Aid From The US In The Past 5 Years: $1.47 billion
When a country’s over 50% population survives on less than $2.15 a day, it truly needs a helping hand, which is why Niger is amongst the countries that receive the most aid from the US. The money disbursed to Niger focuses on enhancing its security capabilities and promoting sustainable agriculture. Also, USAID addresses crucial health challenges like malnutrition and maternal-child health in the country.
26. Senegal
Aid From The US In The Past 5 Years: $1.48 billion
Senegal has cooperated with the US on various regional issues because of its democratic stance. But given that 39% population lives below the poverty line in Senegal, it requires assistance, which is why it gets a significant portion of US international aid distribution by country. American aid helps strengthen Senegal’s democratic institutions and supports its health sector in combating infectious diseases.
25. Zimbabwe
Aid From The US In The Past 5 Years: $1.62 billion
Zimbabwe was once the breadbasket of Africa, but it now faces political unrest and economic decline. Therefore, to overcome human rights concerns in the country, US aid helps with democratic governance and addressing health crises, especially HIV/AIDS. Notably, the country received around $40 million from the US in 2022 alone to combat HIV/AIDS.
24. Pakistan
Aid From The US In The Past 5 Years: $1.63 billion
Pakistan’s strategic importance comes from its location and role as a frontier state in war on terror. These aspects have made it a significant recipient of US aid to strengthen civilian governance, improve education and health, and counter extremist narratives. There has been a decline in aid from the US to the country in recent years. However, the US has disbursed significant aid to Pakistan post the 2008 earthquake in the country.
23. Philippines
Aid From The US In The Past 5 Years: $1.78 billion
The Philippines is one of the countries that receive the most in US foreign aid. It is a longstanding ally in Southeast Asia that faces natural disasters, territorial disputes, and internal insurgencies. US aid helps enhance the country’s disaster response capacity and combat threats from extremist factions. Other causes for which the US aids the Philippines are family planning and educating the masses.
22. Zambia
Aid From The US In The Past 5 Years: $2.02 billion
Zambia is in a health crisis as HIV/AIDS, malnutrition, and malaria have alarmingly high rates in the country. Therefore, the US gives foreign aid to get Zambia out of these health challenges. In 2022, the US gave $61 million to strengthen Zambia’s health supply chain.
21. Sudan
Aid From The US In The Past 5 Years: $2.36 billion
Sudan is emerging from decades of conflict and civil war and is in a transitional phase. Foreign help is pivotal in supporting the country’s transition to establish lasting peace and address humanitarian needs. Also, 15.3% of Sudanese people live in extreme poverty and combat hunger more often than not, so Sudan is amongst the largest US foreign aid recipients.
20. Bangladesh
Aid From The US In The Past 5 Years: $2.46 billion
Although Bangladesh has seen impressive growth since its independence in 1971, the country suffers from natural disasters, rapid urbanization, and political tension. US assistance aids in disaster preparedness and health issues that are related to maternal-child health and infectious diseases.
19. Mozambique
Aid From The US In The Past 5 Years: $2.75 billion
Mozambique is one of the countries receiving the most foreign aid from America. The country has the 5th highest poverty rate in the world, currently standing at 64.6%. Which means almost two-thirds of its population is facing food insecurity and health crisis. The country is also struggling with the aftermath of civil war and infectious diseases. Therefore, Mozambique benefits from US aid for health improvements and to overcome food insecurity.
18. Tanzania
Aid From The US In The Past 5 Years: $2.88 billion
Tanzania’s GDP is $85 billion, and nearly 44.9% of its population deals with extreme poverty. US foreign aid in the country supports conservation initiatives and enhances public health infrastructure.
17. South Africa
Aid From The US In The Past 5 Years: $3.310 billion
South Africa grapples with stark income disparities and system injustice, which push a huge number of people to live in poverty. To ease this humanitarian issue, the US has disbursed $3.310 billion to South Africa between 2018 and 2022.
16. Colombia
Aid From The US In The Past 5 Years: $3.32 billion
Colombia is also recovering from decades of internal conflict with armed groups and works closely with US aid to support peace processes. Other efforts the US is doing in the country are to counter narcotics trafficking and strengthen human rights observance.
15. Uganda
Aid From The US In The Past 5 Years: $3.77 billion
Uganda’s resources are feeble compared to its rapidly growing population growth rate. Along with humanitarian food assistance, the US helps Uganda with combating HIV/AIDS and strengthening health infrastructure so the country can reach its full population potential.
14. Somalia
Aid From The US In The Past 5 Years: $3.870 billion
Somalia is the 4th poorest country in the world in terms of poverty rate, as its 70% population survives on less than $2.15 a day. The country has a long history of instability and threats from extremist groups, so it benefits from US aid aimed at restoring some form of stability.
13. Syria
Aid From The US In The Past 5 Years: $3.93 billion
Syria is ravaged by a protracted civil war and is in the middle of the worst humanitarian crisis of the present times. Therefore, the US has given foreign aid of approximately $3.93 billion to the country in the past 5 years to help it overcome hunger and disease spread.
12. Kenya
Aid From The US In The Past 5 Years: $4.12 billion
The extreme poverty rate in Kenya is 24.9% because of persistent unemployment and illiteracy. East Africa’s anchor also combats threats from terrorism and health crises like HIV/AIDS. As a result, monetary assistance from the US boosts counterterrorism efforts and promotes health and education in the poverty-stricken country.
11. Democratic Republic of Congo
Aid From The US In The Past 5 Years: $4.19 billion
DR Congo has the 6th highest poverty rate worldwide, which puts it in a state of persistent food and health insecurity. Notably, the country has vast natural resources but still faces challenges from internal conflicts and health crises. US aid seeks to restore stability and address human rights issues in the country.
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Disclosure: None. 30 Countries That Receive the Most Foreign Aid From the US is originally published at Insider Monkey.
